3 bitter effects of Coronavirus on People
As Nigeria continues to deal with the economic implication of the COVID-19 pandemic, inflation rate rises to 12.40% (year-on-year) in May 2020, 0.06% points higher than 12.34% recorded in April 2020 meaning that the Nigerian naira has less purchasing power making life difficult for both indiiduals and companies who have recorded tremendous losses due to the effect of the Pandemic.
The latest inflation figure indicates the highest in
over two years, since April 2020 when the CPI recorded was 12.48%. This is detailed
in the latest inflation report released by the National Bureau of Statistics
(NBS).
Food inflation, a closely watched component of the
inflation index rose by 15.04% (year-on-year) compared to 15.03% recorded in
the previous month. A rise which was caused by increases recorded in process of
Bread and cereals, potatoes, yam, and other tubers, oils and fats, fruits,
fish, and meat.
The highest increases were recorded in prices of
pharmaceutical products, medical services, repair of furniture, hospital
services, passenger transport by road, motor car, bicycles, maintenance and
repair of personal transport equipment, passenger transport by sea and inland
waterways, paramedical services, motorcycles and hairdressing salons, and personal
grooming establishment.
The trend is feared to continue into the month of
september as Nigeria still continues to grapple with the effect of the
Coronavirus pandemic even as Nigerian government continues to ease lockdown
banns across the Federation.
The fact is that things will never be the same at
least not anytime soon. It is important that Nigerians begin to brace up for
the upcoming challenges that will arise in the struggling Economy. Below are
the 3 bitter effect of Coronavirus on People;
1. 42% of all coronavirus job losses will be permanent.
This statistic has to be one of the most underreported of all and the most staggering. Day after day people will continue to lose their jobs and all the newly unemployed will be able to return to their jobs real soon. However, research, history and data do not support this message.
While it does seem that the majority of people will be able to return to their jobs after the coronavirus lockdowns are lifted and the economy fully opens, far too many will learn they no longer have jobs to return to. The Becker Friedman Institute of the University of Chicago reports that COVID-19 is causing reallocation shock that’s both driving “the fastest reallocation of labor since World War II” and causing the elimination of millions of jobs. It finds that “42 percent of recent layoffs will result in permanent job loss.” To learn more about reallocation shock and how it has simultaneously led to massive upticks in both hiring and layoffs, read this BFI report.
READ ALSO:International Job Openings
Beyond BFI’s findings, there is more evidence to support the prediction that millions of job losses will become permanent. For example, CNN reports that GE will permanently cut 13,000 aviation jobs in response to the pandemic and a few other aviation factors. MGM Resorts laid off some 63,000 workers in March, and the company is now acknowledging that many of those coronavirus layoffs may become permanent. Then you have the bankruptcies. So far, major retailers including Neiman Marcus and J. Crew have filed with more companies at risk. But small business may suffer most of all. FEMA reports that up to 60% of small businesses never recover from a disaster. Surely, COVID-19 must be classified a disaster—right?
If 42% of the coronavirus job losses really do end up
being permanent, this would be a devastating blow for the unemployed and for
the economy. Given that 33.5 million people have filed new jobless claims so
far, it stands to reason that approximately 14 million people could end up not
having a job to return to at all.
2. Coronavirus
recession will last far longer than many will admit.
The CBO predicts that unemployment will reach at least
16% by 3rd quarter, but “real” unemployment has arguably already surpassed the
high (24.9%) of the Great Depression. The CBO also informs that unemployment
will linger at highs of 10% or better for the remainder of 2020 and for much of
2021. Americans struggled deeply getting through the Great Recession when
unemployment hovered at just under 10% for years.
READ ALSO: Job vacancies in Nigeria
What’s worse is that if the CBO’s predictions prove
true, millions more Nigerians will face unemployment—many who aren’t yet even
contemplating such a predicament for themselves. Whether you’re currently
unemployed, worried about becoming unemployed or you are comfortably secure
about your job, I recommend you focus your mind on this bitter truth, and
consider taking these action steps to prepare for a long drawn-out, struggling
economy.
3.
Nigerians are known to be very hardworking and
intelligent set of people around the world. But the youths continue to suffer
due to lack of government support, lack of access to finance, lack of access to
good education. As the recession continues, Nigerian youths will continue to
suffer because they are not equipped financially to start a business that will
generate income leaving many scrambling for any means of survival which results
to indulgence in various crimes such as scamming, 419, Arm robbery, kidnapping, Ritual killing etc.
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